When the Dodd-Frank financial reform law first passed, Senate Republicans refused to confirm a director for the newly-created Consumer Financial Protection Bureau. They promised to block any nominee — regardless of that nominee’s qualifications for the job — unless the Bureau was weakened and made subservient to the same bank regulators who failed to prevent the 2008 financial crisis.

President Obama was thus forced to recess appoint Ohio Attorney General Richard Cordray to be the Bureau’s first director. Now that Obama has renewed Cordray’s nomination, the Senate GOP is again promising to block any nominee unless the Bureau is watered down:

In a letter sent to President Obama on Friday, 43 Republican senators committed to refusing approval of any nominee to head the consumer watchdog until the bureau underwent significant reform. Lawmakers signing on to the letter included Senate Minority Leader Mitch McConnell (R-Ky.) and Sen. Mike Crapo (R-Idaho), the ranking member of the Senate Banking Committee.

“The CFPB as created by the deeply flawed Dodd-Frank Act is one of the least accountable in Washington,” said McConnell. “Today’s letter reaffirms a commitment by 43 Senators to fix the poorly thought structure of this agency that has unprecedented reach and control over individual consumer decisions — but an unprecedented lack of oversight and accountability.”

In particular, Republicans want to see the top of the bureau changed so it is run by a bipartisan, five-member commission, as opposed to a lone director.

They also want to see the bureau’s funding fall under the control of congressional appropriators — it currently is funded via a revenue stream directly from the Federal Reserve.

Republicans want to implement a commission (instead of a lone director) and subject the CFPB to the appropriations process in order to stuff it full of appointees with no interest in regulating and starve it of funds. The other financial system regulators that have to go before Congress for their funds already don’t have the resources to implement Dodd-Frank, thanks the House GOP, leaving large swathes of it unfinished. There are also a host of other reasons that the CFPB needs to be both independently funded and have a strong, independent director.

The CFPB has done important work on behalf of consumers, winning wide praise from consumer advocates and the financial industry. Senate Republicans, meanwhile, have made it abundantly clear that they believe that blocking any and all nominees is an acceptable strategy.

10. Reuters: Republicans Pledge To Block Obama Consumer Finance Pick

WASHINGTON | Fri Feb 1, 2013 5:02pm EST
(Reuters) - Senate Republicans on Friday pledged to block President Barack Obama's choice to lead the consumer finance watchdog until Democrats agree to restructure it, ramping up an expected fight this year over the controversial new bureau.

The group of 43 Republicans, led by minority leader Mitch McConnell of Kentucky and Mike Crapo, an Idaho senator who is the top Republican on the banking committee, said the Consumer Financial Protection Bureau lacks congressional oversight.

15. That I can't help you with but the reporting is accurate. eom

7. This Is How Filibuster Reform Comes Back To Life

This Is How Filibuster Reform Comes Back To Life

Brian Beutler

In the spirit of the bipartisan, but toothless rules reforms the Senate passed last week, Senate Minority Mitch McConnell and over 40 of his members are vowing to block confirmation of a permanent Consumer Financial Protection Bureau director unless Democrats agree to pass legislation dramatically weakening the agency.

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For now, Richard Cordray remains CFPB director, thanks to a recess appointment. But that appointment expires at the end of the year, and could come to an end earlier thanks to the DC circuit court, which ruled that similar appointments to a different regulatory body were unconstitutional.

This is a real problem. Without a director, the CFPB loses a lot of its power. But the milquetoast rules reforms that passed last week give Harry Reid no parliamentary tools to pry the GOP off its position. Short of battling it out with Republicans in the public sphere and hoping they crack, President Obama will see one of his signature accomplishments neutered by what amounts to an ad hoc legislative line item veto…by a congressional minority.

Unless Reid decides to play hardball. The court decision, and McConnell’s renewed filibuster threat seem to have caught him by surprise somehow. But if at some point later this year it becomes clear Republicans will continue to block Cordray past the end of his recess appointment, Reid could in theory revisit the filibuster reform fight.